There’s ‘no way’ China will meet its 5.5% growth target: Stephen Roach
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China faces an “enormous threat” according to Stephen Roach (an economist who long supported the Asian giant).
Roach said that although he is a bully congenital in China, “It’s not true for me right now.”Squawk Box Asia” Friday.
Beijing has officially set a growth target of around 5.5%Roach expressed concern for China’s economy in this year but said that it will “be lucky” if the country makes 4.
Roach, who was formerly the chairman of Morgan Stanley Asia and is now a Yale University senior fellow, said that China faces formidable pressures. It’s unlikely that it will meet its 5.5% forecast.
China … is not going to bail the world out the way it did after the global financial crisis
Stephen Roach
senior fellow, Yale University
Workers at the Sihong County factory that produces carbon fiber badminton rackets in China’s Jiangsu Province. China announced Saturday that April factory activity contracted faster than expected after Covid-19 lockdowns stopped industrial production and disrupted supply chain.
Visual China Group | Getty Images
Roach warns that China’s slowdown is likely to have global consequences, and Beijing will no longer be able to save the world as it did in 2008 after the global financial crash.
“From 2009 through 2012… China was growing, remember, 8%, and that cushion kept this world from falling back into recession,” he stated. The cushion was gone.
“China … is not going to bail the world out the way it did after the global financial crisis,” Roach said. The global economic outlook is also affected by this.
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